Oakville Real Estate News

Condo Status Certificate

Making a real estate transaction is a com­plicated process,
involving mountains of pa­perwork and many factors coming together just right.
When the deal involves the pur­chase of a condominium, things get even more
complex with condo fees, reserve funds, annual budgets, status certificates and
condo boards to consider.

Many of the aforementioned items are probably known to prospective buyers who
are considering a condo purchase, but what about a status certificate? It’s not
talked about quite as often as condo fees so it might not be on the radar of
many buyers.

A status certificate is a prospective condo owner’s first look into the
financial health of their potential investment. This comprehen­sive report
gives all the details on the current fees that owners’ pay, any large fee
increases that may be on the horizon and any liens or arrears owed by
particular owner(s). Finan­cial statements are part of the status certifi­cate
too and will show the trends in expen­ditures and receipts of the past, and
provide comparisons of a corporation’s actual and expected costs.

A status certificate is essential to helping prospective buyers make an
informed deci­sion. It includes all by-laws, budgets, reserve fund balances,
insurance and details on any major work that needs to be done to the build­ing.
The status certificate is also supposed to detail any legal actions taken or
pending against the condo corporation and whether its insurance provides enough
coverage.

To get your hands on a condominium’s status certificate, you must submit a
written request to the condo board’s management company, plus a $100 fee. They
have 10 days, as required by law, to provide the certificate.

It’s a good idea for a seller to order a status certificate before listing
their condo, and to understand what’s in it (as well as their real­tor) because
it’s very likely that any incoming offers will be conditional upon a review of
it. Doing so will also save you the 10 days wait­ing period that is would take
for the prospec­tive buyer to get one.